Infosys slumps on two-notch UBS downgrade

UBS has downgraded Infosys (INFY-4.8%) to Sell from Buy, and slashed its PT to $45.77 from $67.44. The firm is worried the IT outsourcing giant isn't as well-positioned as rivals to take advantage of growth opportunities, and is also concerned about its high attrition rate.

Infosys has seen a number of senior execs jump ship since Narayana Murthy returned as chairman last year, and CEO S.D. Shibulal plans to leave by January. Meanwhile, concerns about the impact of cloud software/services on traditional outsourcing work remain high; Infosys has tried to deal with the trend in part by offering more proprietary/value-added services.